For personal use only Ray Malone Executive Director & CEO - - PowerPoint PPT Presentation

Ray Malone Executive Director & CEO Presentation 4th Annual Australian Microcap Investment Conference 22 – 23 October 2013

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• AMA Group Ltd (ASX:AMA) was listed on the Australian Stock Exchange
• n 31 August, 2006.
• Focused on the wholesale vehicle aftercare and accessories market.
• vehicle protection bullbars
• smash repair shops
• automotive and electrical components
• servicing workshops for transmissions and brakes
• Market leading brands with a commitment to operating excellence.
• Strong Balance Sheet (net cash) and highly cash generative.
• Culture of employee ownership.
• Well

positioned for

• rganic

and inorganic growth

• pportunities.
• Enhancement of business through Custom Alloy acquisition

AMA Group

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AMA History

February 2009

• $50m+ of liability
• Challenging
• perating

environment

• Business

inefficiencies

• Unstable outlook

Getting back on track: FY09 – FY12

• Stabilise management/HR investment
• Debt reduction plan
• Focus on increasing revenues
• Stabilise/grow operating cash
• Increase EBITDA
• Improve stakeholder returns

0.00 0.20 0.40 0.60 0.80 1.00 1.20

Share Price Relative Small Industrials

$0.82/sh placement First full-year result in line with prospectus Substantial fall in profitability and GFC Guidance of substantial deterioration in market conditions Ray Malone becomes director Recapitalisation; Ray Malone appointed MD Strong result and increased market awareness $0.35/sh placement Resumption of dividends New Board appointed Closing Price Custom Alloy Acquisition

FY13 and beyond

• Capital Raising
• Debt Reduction
• Organic Growth
• Complementary

Acquisition

Repayment

• f debt

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AMA Group

Reporting segment Vehicle protection products Vehicle protection products Panel repair Vehicle accessory distribution Cable & accessory distribution Vehicle transmission repair Other Market focus

• SUV and

4WD vehicles

• Medium

commercial vehicles

• Prestige

vehicles

• Broader

market

• SUV and 4WD

vehicles

• Vehicle auto-

electrical, caravan & boat

• All road

vehicles

• Off the road

and sports brakes sales and repair Client focus

• Wholesale

distributors

• Wholesale

distributors

• Major

insurance companies, OEM, fleet, private clients

• Auto electrical,

fleet buyers, mining

• perations
• OEMs, mass-

market retail chains

• Major vehicle

manufacturers

• Specialist

fleets, private after- market Geograph ic spread

• Qld based,

national & international market

• Qld based,

national

• South-east

Melbourne

• Western

Australia

• Qld based with

national & international distribution

• Melbourne

based, national distribution

• Western

Australia FY13 Revenue

• $21.09m
• $11.69m
• $14.33m
• $13.01m
• $8.476m
• $5.58m
• $2.81m

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Continued Organic Growth

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Financial Summary

FY09 FY10 FY11 FY12 FY13 Revenue ($million)

44.95 51.34 53.93 60.79 (1) 64.91

EBIT($million)

(6.72) 8.15 8.16 8.92 (2) 9.21

Operating Cash Flow

($million)

(3.09) 6.86 6.45 7.93 10.99

Dividends (cents per share)

1.0 1.6 1.6

Net Debt ($ million)

27.25 21.97 15.17 15.53 (8.24)

(1) From continuing operations (2) Normalised to remove legal recovery from EBIT

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2013 Highlights

Date (2013) Event January Successful Capital Raising

• $14.5m net proceeds @ $0.35 per share

August Entire Bank Debt extinguished Restrictive Bank Covenants removed October First Major Acquisition Announced Custom Alloy Acquisition - Headline Information

• Main business is Alloy bullbar manufacturing specifically for the medium commercial

vehicle market

• Located in Queensland, within 15km of ECB
• Has demonstrated strong growth in recent years

– Revenue was c$11.69 million in FY13 – EBIT was c$1.42 million in FY13

• Acquired at an EBIT multiple of 3.4x for cash of $4.9 million plus Inventory

(capped at $1.0 million)

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Improved market positioning for AMA in the Motor Vehicle Protection Products Segment

• The total Vehicle Frontal Protection Bar market is made up of, Steel Bullbars and

Nudge Bars, Aluminium Bullbars and Nudge Bars and Plastic/Poly Bullbars.

• Aluminium Bullbars only – represent approx. 35%-40% of total Vehicle Frontal

Protection Bars sold in Australia.

• ECB

– Primarily services the SUV, Light Commercial and Passenger Vehicle markets – Currently supplies approx. 35% of the total Alloy Bullbar market and approx 20%

• f the Alloy Nudge Bar market
• Custom Alloy

– Primarily services the Medium and Heavy Commercial Vehicle segments – Currently supplies approx. 15% of the total Alloy Bullbar market

• In summary the combined companies would supply approximately;

– 50% of the Aluminium Bullbar market. – 20%-22% of the overall Frontal Protection Bar market.

Custom Alloy Acquisition

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The Acquisition will improve AMA earnings through:-

• Significant improvement in:

– Business Leadership – Financial Management – Internal Control Systems – Production Productivity – Inventory Management

• Maximisation of purchasing & sub-contract services synergies with our ECB business.
• Business focus of ECB and CA

– allow each business to focus on their own target market sectors – eliminate duplication of products for the same vehicle – eliminate competing market offerings

• Efficiency gains in R&D through maximisation of knowledge-sharing and capacity

utilisation.

• Increase potential customers for CA and ECB through cross-pollination.
• Leverage marketing synergies.
• Increase customer satisfaction through RFT (Right First Time) and

DIFOT (Delivered In-Full & On-Time) management and “the best job possible” mentality.

Custom Alloy Acquisition

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AMA – FY2014 Outlook

• Commitment to paying and growing dividends
• Continued focus on delivering organic growth

across all business units

• Integration of Custom Alloy acquisition
• Further earnings accretive acquisitions will be

considered when the time is right

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Thank you

Contact Details: Ray Malone AMA Group Limited PO Box 122 Margate QLD 4019

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